On July 1, 2019, Kay Company sold equipment to Mando Company for P 1,000,000. Kay accepted a 10% note receivable for the entire sales price.This note is payable in two equal installments of P 500,000 plus accrued interest on December 31, 2019 and December 31, 2020.On July 1, 2020, the entity discounted the note at a bank at an interest rate of 12%.What is the amount received from the discounting of note receivable? a. 484,000 b. 493,500 c. 503,500 d. 517,000
On July 1, 2019, Kay Company sold equipment to Mando Company for P 1,000,000. Kay accepted a 10% note receivable for the entire sales price.This note is payable in two equal installments of P 500,000 plus accrued interest on December 31, 2019 and December 31, 2020.On July 1, 2020, the entity discounted the note at a bank at an interest rate of 12%.What is the amount received from the discounting of note receivable? a. 484,000 b. 493,500 c. 503,500 d. 517,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2019, Kay Company sold equipment to Mando Company for P 1,000,000. Kay accepted a 10% note receivable for the entire sales price.This note is payable in two equal installments of P 500,000 plus accrued interest on December 31, 2019 and December 31, 2020.On July 1, 2020, the entity discounted the note at a bank at an interest rate of 12%.What is the amount received from the discounting of note receivable?
a. 484,000
b. 493,500
c. 503,500
d. 517,000
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